If you’re interested in using your professional skepticism to dissect the inner workings of companies, then you could be the perfect fit for one of the different types of auditing jobs available. In general, auditing involves reviewing, assessing, and analyzing the processes, services, products, employees, or systems that make up an organization’s structure. Auditing is an important task because it provides accurate, unbiased assessment for managers and shareholders to increase the efficiency of their organizations. Like with other accounting fields, employment in auditing is expected to grow steadily faster than average at 13% from now until 2022 to create more jobs for qualified auditors, according to the Bureau of Labor Statistics. Below we’ll review the common types of auditing jobs found across different industries.
Internal auditors work within organizations to ensure that all company policies are operating effectively and specific risk management programs are implemented properly. Internal auditors carefully review their company’s procedures to make certain they are conforming to human resources and top management guidelines. Directors typically prefer hiring candidates who have become Certified Internal Auditors (CIAs) after earning a four-year degree in accounting or auditing. Internal auditors do not need to have a CPA license to perform financial, internal control, and compliance audits directly for their company.
On the flip side, external auditors work independently outside of the organization they are auditing to provide useful assessments to the company’s shareholders. Most external auditors specialize in offering their unbiased opinion on the truthfulness of the organization’s financial statements. External auditors are appointed from a public accounting firm to perform tests that monitor a client organization’s current financial systems. Since external auditors are given free rein to examine literally every aspect of a company, external auditors generally must fulfill the 150-hour requirement for receiving a CPA license.
Tax auditors have another common auditing job that involves applying accounting expertise in reviewing an organization’s tax-reporting procedures. Tax auditors have the single-minded goal of ensuring that employees are complying with all federal, state, and local tax laws while performing their daily business operations. Most tax auditors will consult with the in-house senior tax manager to analyze past tax filings as well as forecast future tax bills too. Getting a tax auditing job will likely require individuals to pursue a bachelor’s degree in taxation, accounting, or finance. Earning the Enrolled Agent (EA) credential through the Internal Revenue Service (IRS) is often advised for tax auditors.
Sometimes referred to as investigative auditors, forensic auditors are trained in accounting to detect fraudulent activities and uncover evidence that could be used in a court of law. Forensic auditors may investigate unlawful insurance claims, embezzlement charges, suspicious overseas bank accounts, false tax claims, pyramid schemes, and the like. Forensic auditors use their keen attention to detail to reveal potential areas of illegality in financial information. Some forensic auditing jobs are specialized in civil or criminal law. To build a successful career as a forensic auditor, you’ll likely need to pursue CPA licensure and a master’s degree, according to the American Institute of CPA’s.
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Overall, auditing is a highly diverse field that involves various aspects of systematically examining finances to ascertain whether the data is accurate and in compliance with mandated regulations. Now that you know the types of auditing jobs available, you can determine which is right for you and start meeting the different levels of employment qualifications.